BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 760|
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                                 THIRD READING


          Bill No:  SB 760
          Author:   Alquist (D)
          Amended:  5/25/11
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  9-0, 5/4/11
          AYES:  Lowenthal, Alquist, Blakeslee, Hancock, Huff, Liu, 
            Price, Simitian, Vargas
          NO VOTE RECORDED:  Runner, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  6-1, 5/23/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Runner
          NO VOTE RECORDED:  Walters, Emmerson


           SUBJECT  :    Postsecondary education:  the Cal Grant Program

           SOURCE  :     California Student Aid Commission


           DIGEST  :    This bill clarifies and defines the annual 
          reporting requirements, required under SB 70 (Senate Budget 
          and Fiscal Review Committee), Chapter 7, Statutes of 2011, 
          for all institutions that voluntarily choose to participate 
          in the Cal Grant program.  

           ANALYSIS  :    Existing law specifies, under SB 70, as a 
          condition for its voluntary participation in the Cal Grant 
          program, each Cal Grant participating institution shall 
          provide the California Student Aid Commission (CSAC) with 
          enrollment, persistence, and graduation data for all 
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          students and job placement rate and salary data and wage 
          information for each program that is either (1) designed or 
          advertised to lead to a particular type of job; or (2) 
          advertised or promoted with any claim regarding job 
          placement. 

          Existing law authorizes the Cal Grant Program, administered 
          by the CSAC, to provide grants to financially needy 
          students in order for them to attend college. These grants 
          are awarded in order to assist with the costs of a program 
          of study that result in the award of an associate or 
          baccalaureate degree or certificate requiring at least 24 
          semester units or the equivalent, or results in eligibility 
          for transfer from a community college to a baccalaureate 
          degree program. 

          Existing law provides that a "qualifying institution" for 
          purposes of participation in the Cal Grant Program, must be 
          one of the following:

          1. A California private or independent postsecondary 
             educational institution that participates in the Pell 
             Grant program and at least two of the following:

              A.    Federal Work-Study.
              B.    Perkins Loan Program.
              C.    Supplemental Educational Opportunity Grant 
                Program.

          2. A nonprofit institution headquartered and operating in 
             California that:

             A.    Certifies to the CSAC that 10 percent of its 
                operating budget, as demonstrated in an audited 
                financial statement, is expended for institutionally 
                funded student financial aid in the form of grants.

             B.    Demonstrates the capacity to administer the funds. 


             C.    Is accredited by the Western Association of 
                Schools and Colleges, or is regionally accredited and 
                was deemed qualified to participate in the Cal Grant 
                Program by the CSAC for the 2000-01 academic year.

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             D.    Meets any other state-required criteria adopted by 
                regulation by the CSAC in consultation with the 
                Department of Finance. 

          3. Any California public postsecondary educational 
             institution.
           
           This bill:

          1. Clarifies the enrollment, persistence and graduation 
             data, required as a condition for voluntary 
             participation in the Cal Grant program (included in SB 
             70), from each participating institution for each term 
             of the academic year immediately prior, for all students 
             in its Cal Grant eligible undergraduate programs at each 
             California campus identified under the same six-digit 
             federal Office of Postsecondary Education identification 
             number:

             A.    Enrollment data, including enrollment status, and 
                whether the student is a first-time student, 
                continuing or returning student, transfer student, or 
                other student.

             B.    Persistence data, including a student's education 
                level.

             C.    Graduation data, including whether a degree or 
                certificate was conferred and the on-time completion 
                rate by cohort based on date of initial enrollment 
                and by degree and certificate, for each California 
                campus identified under the same six-digit federal 
                Office of Postsecondary Education identification 
                number, and in the aggregate for all the 
                institution's campuses and locations.

             D.    The job placement rate and salary and wage 
                information for each program that is either of the 
                following:

                (1)      Designed or advertised to lead to a 
                   particular type of job.


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                (2)      Advertised or promoted with any claim 
                   regarding job placement.  Job placement rate and 
                   salary and wage information required by this 
                   subdivision shall be reported for each program for 
                   each California campus identified under the same 
                   six-digit federal Office of Postsecondary 
                   Education identification number, and in the 
                   aggregate for all the institution's campuses and 
                   locations.  The job placement rate and salary and 
                   wage information shall be reported in the 
                   aggregate for Cal Grant recipients by program.

          2. Authorizes the CSAC to use data already available from 
             federal agencies and other state agencies in lieu of 
             requiring institutions to report, if the CSAC determines 
             the data are sufficient for meeting the requirements 
             under #1 above.

          3. Defines a "California campus" as each California campus, 
             additional location, site, or branch identified on the 
             institutional participation agreement of the qualifying 
             institution.

          4. Defines "normal time" as the amount of time necessary 
             for a student to complete all requirements for a degree 
             or certificate according to the institution's catalog. 

          5. Defines "on-time completion rate" as all of the 
             following:

             A.    The number of students attending a California 
                campus who completed the program during the most 
                recently completed award year.

             B.    The number of students who completed the program 
                within the normal time, as defined, regardless of 
                whether students transferred into the program or 
                changed programs at the institution.

             C.    Dividing the number of students attending a 
                California campus that completed the program within 
                normal time by the total number of students who 
                completed the program and multiplying the result by 
                100.

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             D.    Requires institutions to calculate the on-time 
                completion rate for each California campus identified 
                under the same six-digit federal Office of 
                Postsecondary Education identification number.

          6. Defines "placement rate" as the placement rate for 
             students attending a California campus as determined 
             under a methodology developed by the National Center for 
             Education Statistics (NCES), when the rate is available. 
              If an NCES placement rate methodology has not been 
             specified then the methodology shall be the methodology 
             specified by the institution's accrediting agency, as 
             specified.  If an accrediting agency does not specify a 
             methodology for the calculation of a placement rate, 
             then the CSAC shall specify the methodology.

           Comments
           
           Need for the Bill  .  SB 70 began the process of requiring 
          the reporting of enrollment, persistence, graduation, and 
          job placement data of institutions participating in the Cal 
          Grant program.  This bill is intended to:

          1. Clarify reporting requirements of SB 70; 

          2. Mitigate impact of the new data reporting requirements 
             (from SB 70) on Cal Grant participating institutions by 
             aligning data elements as much as possible with those 
             already required for federal Title IV financial aid 
             eligibility;  

          3. Ensure public access to data about each Cal Grant 
             participating school's program performance; and

          4. Provide the Legislature with necessary data as it 
             considers future policy changes for the Cal Grant 
             program.
           
          Federal regulations generally take effect July 1, 2012  .  
          Regulations for institutional participation in various 
          federal financial aid programs, including the federal Pell 
          Grant program, have been promulgated and will take effect 
          July 1, 2012.  Many of the definitions described in SB 760 

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          are taken from the federal registry of regulations and are 
          intended to align California's Cal Grant program with 
          federal definitions.  

           Proposed budget cuts to Cal Grant program  .  As part of the 
          2011 Budget, the Legislature recently approved $124 million 
          in cuts to the Cal Grant program by requiring the CSAC to 
          annually verify income and asset levels of renewals and by 
          making institutions with specified student default rates 
          ineligible to participate in Cal Grant programs. And also 
          specifies, as a condition for its voluntary participation 
          in the Cal Grant program, each Cal Grant participating 
          institution shall provide the CSAC with specified 
          information.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                           Fiscal Impact (in thousands)

             Major Provisions                2011-12     2012-13      
             2013-14               Fund  

            Delay reporting                         ---cost 
            pressure*---        General
            requirements

            Increased reporting           potentially significant 
            ongoing cost        General
                                pressure; potentially significant 
            savings

            * Ongoing cost pressure created by SB 70 is delayed to 
            2012-13

           SUPPORT  :   (Verified  5/24/11)

          California Student Aid Commission (source)



          CPM:mw  5/25/11   Senate Floor Analyses 

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                         SUPPORT/OPPOSITION:  SEE ABOVE

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